Technoglitch
Core Member
Here are 6 ways that electronic payments will save you money:
1. At present, there is a Merchant Discount Rate (MDR) of 0.75% on Debit Card transactions upto Rs.2000 and 1% on all transactions above Rs.2000. The possibility of reduction in the MDR and the rationalization of the distribution of the MDR across different stakeholders will be examined, the finance ministry said.
2. Income tax benefits to consumers and merchants, including a 1-2% reduction in value added tax on all transactions, is under consideration.
3. The government could also levy a cash handling charge on transactions greater than a specified level. This is aimed at pushing people towards using their debit or credit cards to make payments.
4. High value transactions, like more than Rs 1 lakh, could be mandated only through electronic means.
5. Currently, banks have to report transactions of over Rs 2 lakh made via credit cards. This limit may be increased to Rs 5 lakh or more.
6. The finance ministry said, Currently, the telecom companies are levying an Unstructured Supplementary Service Data (USSD) charge of Rs. 1.50 per transaction for mobile banking/payments. To enhance adoption of mobile banking/payment, the USSD charges could be examined and rationalized."
This is how using your credit or debit cards will save you income tax | Latest News & Updates at Daily News & Analysis
1. At present, there is a Merchant Discount Rate (MDR) of 0.75% on Debit Card transactions upto Rs.2000 and 1% on all transactions above Rs.2000. The possibility of reduction in the MDR and the rationalization of the distribution of the MDR across different stakeholders will be examined, the finance ministry said.
2. Income tax benefits to consumers and merchants, including a 1-2% reduction in value added tax on all transactions, is under consideration.
3. The government could also levy a cash handling charge on transactions greater than a specified level. This is aimed at pushing people towards using their debit or credit cards to make payments.
4. High value transactions, like more than Rs 1 lakh, could be mandated only through electronic means.
5. Currently, banks have to report transactions of over Rs 2 lakh made via credit cards. This limit may be increased to Rs 5 lakh or more.
6. The finance ministry said, Currently, the telecom companies are levying an Unstructured Supplementary Service Data (USSD) charge of Rs. 1.50 per transaction for mobile banking/payments. To enhance adoption of mobile banking/payment, the USSD charges could be examined and rationalized."
This is how using your credit or debit cards will save you income tax | Latest News & Updates at Daily News & Analysis
